In another problematic financial quarter for the iconic motorcycle manufacturer, Harley-Davidson announced a significant drop in sales, reporting a 26% decline in revenue.
The company’s consolidated revenue has officially fallen to $1.15 billion, notably below many industry analysts’ estimates for 2024, according to Yahoo Finance.
The motorcycle manufacturer’s decline was driven by a sharp 32% drop in overall revenue from the Harley-Davidson Motor Company (HDMC), although the company’s financial services section, Harley-Davidson Financial Services (HDFS), has managed a modest 10% increase.
Despite the increase from HDFS, the overall performance of both sections of the company has led to an adverse market reaction, with Harley-Davidson stock continuing to slip after the most recent earnings report.
Global motorcycle sales also reflected this declining trend, falling by 13%.
Sales were down by 10%, particularly in North America, as higher interest rates deterred consumer spending. International motorcycle markets also struggled, with sales in various regions experiencing double-digit declines, leading to an 18% overall drop in total motorcycle sales globally, per Yahoo Finance.
Despite the challenging market conditions, Harley-Davidson’s earnings per share (EPS) of $0.91 exceeded analyst expectations of $0.79. However, the company’s gross profit margin for HDMC still fell to 30.1%.
In response to the ongoing market pressures, Harley-Davidson has recently decided to lower its production outlook for 2024.
HDMC has continued to change its strategies in 2024 in response to various market pressures, including a recent focus by many consumers on the company’s shifting internal values.
As reported previously by The Dallas Express, Harley-Davidson found itself at the center of a controversy when online activist Robby Starbuck publicly criticized and called out several of the company’s recent changes, including its new focus on diversity programs.
“@harleydavidson has been one of the most beloved brands in America but recently on CEO Jochen Zeitz’s watch, they’ve gone totally woke,” Starbuck posted to social media in July.
In late August, the company officially announced its decision to discontinue its “diversity, equity, and inclusion” initiatives. It joins a growing number of major U.S. companies that have recently retracted their support for progressive policies in response to new consumer pressure.
None of these problems were eased by the fact that Harley-Davidson also had to recall over 56,000 bikes within the past two months due to
